svlk: improving forest governance and promoting trade of legal timber products from indonesia
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SVLK – Improving Forest Governance and Promoting Trade of Legal Timber Products from Indonesia
Indonesian Timber Legality Assurance System, or known as SVLK (Sistem Verifikasi Legalitas Kayu) is a system to ensure the sustainability of forest management and/or timber legality and timber tracking through Sustainable Production Forest Management certification (S-PHPL), Timber Legality certification (S-LK), and Supplier Declaration of Conformity (SDoC).
Civil society are involved in the process to ensure the legality of timber and timber products that harvested, transported, processed, and exported from Indonesia. The assessment of performance and the verification of legality is carried out by independent auditor from Conformity Assessment Bodies accredited by National Accreditation Committee (KAN). The process applies standard of assessment/verification as developed by representatives of various forest stakeholders in Indonesia and stipulated by the Minister of Environment and Forestry.
SVLK was developed since 2003 and it always involves multistakeholder along the way, including academician, associations, related ministries, and non-governmental organizations (NGOs). The system was first regulated in 2009 by the Regulation of the Minister of Forestry P.38/Menhut-II/2009, stating that SVLK is mandatory for all forest-based business units from the upstream to the downstream, including the forest owners.
The regulation was strengthened several times, with the Regulation of Ministry of Environment and Forestry (PermenLHK) P.95/Menhut-II/2014 as the latest version. The amendment was aimed to improve the overall enforcement and execution of certification of Performance Assessment Standard and Guideline of Sustainable Production Forest Management and Timber Legality Verification for Permit Holders or Private Forests. In addition, the revised regulation currently accommodates the needs of small and medium enterprises (SMEs). Some highlights of the change includes: a) Private Forest owner can publish SDoC; b) Small business owner can publish SDoC as long as the raw material comes from community forest; c) SME exporting furniture can use the Declaration of Export up to 31 December 2015; d) Government provides facilitation for SME on group-based mentoring, certification, and first surveillance.
Eradicating illegal logging and illegal timber trading
Improving the governance of forest
and forest-based industry
Assuring timberlegality
Increasing dignity of the nation
Promoting legal timber from sustainable
sources
1
2
34
5
SVLK functions as “passport” to enter global legal timber market
BACKGROUND
The wood processing industries are obliged to comply with the regulations and the government’s service is more transparent.
Indonesian timber is deemed legal when its origin and production process as well as subsequent processing, transport and trade activities are verified as meeting all applicable Indonesian laws and regulations
Progress on SVLK Certification Process (up to 28 April 2015):
SVLK helps to reduce illegal logging because timber processing industry can only accept certified legal timber.
Decreasing Trend of Illegal Logging Cases from 2005-2014
ERADICATING ILLEGAL LOGGING AND ILLEGAL TRADING
IMPROVING FOREST-BASED INDUSTRY GOVERNANCE
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1750
478220
15198 59 75 70 29
720
2000
1500
1000
500
0
Management Unit
PHPL (HT)
PHPL (HA)
VLK (KPH)
VLK (HT)
VLK (HA)
VLK Private Forest
VLK Industry
VLK Timber Depot
Passed(unit/Ha)
46(4,301,165)
110(9,245,391)
57(2,449,254)
42(1,565,628)
16(1,036,196)
93(42,672)
1,150
2
Failed (unit/Ha)
24(797,283)
37(2,498,572)
-
-
4(260,395)
4(1,500)
50
-
In Process(unit/Ha)
-
3(530,005)
-
-
-
2(4,493)
271
-
Total(unit/Ha)
70(5,098,448)
150(12,273,968)
57(2,449,254)
42(1,565,628)
20(1,296,591)
99(48,665)
1,471
2
(Source: Ditjen PHKA, 2015)
(Source: SILK Online, 2015)
ASSURING TIMBER LEGALITY
INCREASING DIGNITY OF THE NATION
Indonesia’s legality definition draws on Indonesia’s laws and regulations on forestry, trade, environment, agriculture, land ownership, and international treaties signed and ratified by Indonesia. The definition is framed around a number of the following key principles covering essential aspects of forest production and processing, depending on the type of the forests:
• For state-owned natural and plantation forests these principles cover: (1) The legal status and area, and right to utilize the forest; (2) Compliance with the legal requirements for harvesting; and (3) Compliance with the environmental and social aspects related to harvesting.• For privately-owned forest these principles cover the ownership of the timber as it relates to land area, the logs, and the trading of logs, and this can be cross checked for its traceability.• Other timber harvesting permits regulate logging from non-forest zones that may or may not lead to forest conversion.• In addition, there is a general legality standard covering the supply chain management of timber from the forest through processing units to the point of export.• Compliance towards the Principles, Criteria, and Indicators for Sustainable Forest Management (SFM), as part of the requirements from the SFM Conformity Assessment Body or SFM Certification Body accredited by Indonesian Accreditation Body (KAN).
(Source: SILK online, 2015)
Indonesia used to be known as the hotspot for illegal logging, with total number of loss more than 30 trillion Rupiah per year. SVLK is developed to counter the image by bringing back the trust of the international world.
The target for this goal is expected to be achieved from two approaches:
1. Increasing number of export from forest-based industry in IndonesiaBased on the Regulation of the Minister of Trade (Permendag) No. 64/2012 as amended by Permendag No. 97/2014, all exported forest industry products shall be from SVLK certified timber industry and the V-Legal documents shall be attached to complement the export license (PEB). The number of issued export licenses by using V-legal documents from 1 January 2013 to 28 April 2015 are as follows:
No
1
2
3
4
5
6
7
8
Remarks
Issued V-Legal Documents
Country of Export Destination
EU Member States of Export Destination
HS Codes (4 digits)
Port of Loading in Indonesia
Port of Discharge
Net weight
Value
Unit
Doc.
Country
Country
HS
Ports
Ports
million ton
billion USD
Total
232,843
192
28
44
86
2,080
22.06
16.29
(Source: BPS, 2012 and SILK Online 2013-2014).
Since its enactment, the use of V-legal documents has increased the export values of the following commodity:
No
1
2
3
4
5
Type
Panel
Woodworking
Pulp
Paper
Pre-fabricated buildings
The following are comparison of export value of furniture products using V-legal documents for the past:
Five largest country exportdestination using DE
TOTAL
Change (%)
2012
2,357.29
650.02
1,545.40
611.54
7.43
5,171.70
Export Values ( in million USD)
2013
2,640.26
649.67
1,848.77
602.41
4.59
5,745.71
11.10
2014
2,793.48
807.25
1,721.89
633.62
5.00
5,961.25
3.75
(Source: SILK online, 2015)
Jepara
Cirebon
Bali
Yogyakarta
50 10 15 20 25 30 35
14,274,058
3,112,182
8,123,065
7,257,979
129.3
99.7
87.99
20.5
32,736,453
6,214,995
9,789,553
13,644,308
Center of Industries
Million (USD)
2013
2014
Increased Export Value (%)
USD 146.21million
USD 4.07
million
USD 1.45
million
USD 1.06
millionUSD
1 millionUEA
USANetherlands
South Korea
Taiwan
2. International recognition on the SVLK negotiation processIn order to expand the market access, the Government of Indonesia continuously promotes and negotiates the SVLK as a mechanism to ensure legal timber trading. The goal is for timber products from Indonesia to be accepted in the export destination countries without due diligence.
Main Market
European Union
Australia
Japan, Korea, China, Canada
Progress
The FLEGT VPA (Forest Law Enforcement Governance
and Trade – Voluntary Partnership Agreement) was
signed on 30 September 2013 and came into force on
1 May 2014.
The Country Specific Guideline (CSG) Indonesia was
signed on 16 October 2014.
In the negotiation process
Some of the progress of this negotiation are:
The Government of Indonesian and Australian Agree on the Country Specific Guideline for Legal Timber Trading - Canberra, October 2014
Hosting the 2nd Joint Implementation Committee (JIC) Meeting - Jakarta, February 2015
Start in 2015, series of activities take place to accelerate the timber legality certification for private forests, timber depot, supplier primary industries, and SMEs producing furniture. The facilitators for this process include Ministry of Environment and Forestry, Industry and Trade Office in District/City, Forestry Office in District/City, and NGOs.
To improve the effectiveness of full implementation of SVLK, the Ministry of Environment and Forestry in coordination with Ministry of Trade, Ministry of Industry, and selected local governments initiated a programme to accelerate the certification of SME exporters, especially in the furniture industry.
The first phase, from January to June 2015, the acceleration process will target SME exporters in the furniture industry in Central Java, East Java, Yogyakarta, and Bali Provinces. The second phase, from June to December 2015, will cover primary industries holding Forest Timber Product Exploitation Permits (IUIPHHK).
The acceleration program will cover: (a) data collection; (b) technical assistance; (c) funding for group certification. The target for this programme includes the certification for up to 464 exporting SMEs in the furniture industry and 1000 primary industries holding IUIPHHK permits
PROMOTING LEGAL TIMBER FROM SUSTAINABLE SOURCES
http://silk.dephut.go.id
Manggala Wanabakti Blok I, 6th FloorJl. Jend. Gatot Subroto, Jakarta 10270Telp: +62 21 573 7094Email: mfp@mfp.or.id
Dipo Business Center, 9th Floor, Unit BJl. Jend. Gatot Subroto Kav 50-52 Jakarta 10260 Telp: +62 21 298 66400 - 1Fax: +62 21 298 66402Email: mfp@mfp.or.id
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